The trick about refinancing is to get the lowest interest rate possible. I was lucky enough to lock in a relatively low interest rate of 6% on my mortgage. It doesn't pay to refinance your mortgage unless the interest rate is at least on percentage point lower (due to fees for processing the mortgage paperwork). The interest rate is set by the Fed, they meet monthly to decide what to do with the interest rate. Usually they try to keep everything in check with the economy. If you have an ARM you may want to consider refinancing and getting a fixed mortgage. An arm gives you a low interest rate to start but balloons after a few years to a much higher rate.